Why is My Gas Bill So High?

At a Glance: 

• Aging furnaces or water heaters work harder to maintain temperature, causing higher gas usage and bills.
• Poor insulation forces your heating system to run longer, increasing gas consumption.
• Variable-rate natural gas plans or gas price fluctuations may lead to sudden spikes in your gas bill.

With more than half of U.S. households relying on natural gas for heating, it's no surprise that many homeowners are noticing their gas bills creeping higher. While the average cost of gas in 2020 was about $700 per year, that number climbed to an average of $964 in 2022. If you’re wondering why your gas bill is so high, you’re not alone. Let’s dive into some common reasons for rising gas bills and how to lower them.

Aging Systems Can Lead to Higher Gas Bills

As heating systems like furnaces, boilers, or water heaters age, older systems lose efficiency and work harder to maintain a comfortable temperature, which means they consume more gas. This is especially true if your furnace or water heater is nearing the end of its life. Upgrading to a more efficient, Energy Star-rated model can not only lower your monthly gas bill but also improve comfort in your home. While upgrading might seem like a hefty investment, it often pays off quickly in energy savings.

Solution: If your system is old and inefficient, consider upgrading to a new furnace, water heater, or even converting to an energy-efficient heat pump for long-term savings.

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Inadequate Insulation Forces Your Furnace to Work Harder

If your home is poorly insulated, your furnace has to work overtime to keep your home warm. When heat escapes through walls, windows, or doors, your system uses more fuel to maintain the desired temperature, which leads to a higher bill. Although drafty windows often get the blame, inadequate insulation is a much bigger culprit. Homeowners should address insulation first, as it typically offers a higher return on investment compared to window replacements.

Solution: Hire a professional to conduct a home energy assessment and identify areas where insulation can be improved. This simple step can significantly reduce both your gas and electric bills.

Rising Natural Gas Prices

One major reason your gas bill might be higher is that natural gas prices have been rising. Fluctuations in gas prices are due to various factors, including increased demand, supply disruptions, and even global events. If you’re on a variable-rate plan, your bill may fluctuate month to month, reflecting these market changes.

Solution: Consider switching to a fixed-rate gas plan to avoid surprises. Additionally, using alternative heating methods like a fireplace or lowering your thermostat a few degrees can help you reduce gas usage.

Spikes in Usage During Cold Weather

It’s natural for your gas bill to increase during the winter months when your furnace is running more frequently. But even if your usage spikes, there are ways to minimize costs. Lowering your thermostat by just a few degrees can make a noticeable difference in your monthly bill. According to the New Hampshire Department of Energy, reducing your thermostat by just one degree can save you up to 3% on heating costs.

Solution: Be mindful of your thermostat settings and keep your home a few degrees cooler than you typically would. Every small adjustment can help reduce your gas usage.

Neglecting Basic Furnace Maintenance

Sometimes, rising gas bills are caused by something as simple as skipping routine furnace maintenance. Regularly changing your furnace filter and keeping the system clean can boost efficiency by up to 20%. A dirty filter restricts airflow, forcing your system to work harder to heat your home. Keeping your gas appliances, like your dryer and furnace, in good working order can go a long way toward keeping your gas bill in check.

Solution: Replace furnace filters every 2-6 months and schedule an annual tune-up with an HVAC professional to ensure your system runs efficiently.

An Outdated Thermostat Could Be Wasting Energy

Old thermostats can also cause your furnace to run inefficiently. If your thermostat isn’t working properly, it may be causing your furnace to cycle on and off unnecessarily, wasting natural gas. Upgrading to a smart thermostat allows you to create heating schedules, reducing gas usage when you’re not home and automatically adjusting the temperature based on your routine.

Solution: Invest in a smart thermostat that helps you monitor and control your home’s temperature remotely for optimal efficiency.

A Gas Leak Could Be Raising Your Bills

In rare cases, a spike in your gas bill could be the result of a gas leak. While uncommon, gas leaks can lead to higher-than-usual gas consumption. Signs of a leak include the smell of rotten eggs or hearing a hissing noise near your gas appliances. If you suspect a leak, evacuate immediately and contact emergency services.

Solution: Be aware of the signs of a gas leak, and if you notice any, act quickly to ensure safety.

Conclusion:

High gas bills can be caused by many factors, from aging systems to poor insulation and fluctuating gas prices. To keep your bills in check, it’s important to maintain your appliances, replace older systems, and make small adjustments like lowering your thermostat. One of the best long-term solutions to reducing your gas bill is upgrading to an energy-efficient HVAC system like a heat pump. Heat pumps are cleaner, safer, and don’t rely on gas combustion. To learn more about how you can upgrade your system quickly and affordably, schedule a free virtual estimate with Tetra today!

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